If you run a small business, you might wonder why you’d need the help of a Toronto bookkeeping service. Maybe you feel capable of handling all your accounting information on your own. But working with a company that specializes in small business bookkeeping can be a smart decision to reduce potential financial risks and tax issues. Remember, just because you haven’t encountered any problems yet doesn’t mean the Canada Revenue Agency (CRA) won’t come knocking on your door in the future. And if they do, are you prepared? Below are a few bookkeeping problems encountered by small business owners that can put their business at risk.
Ignoring Government Letters
Maybe you ignore government letters because they stress you out. Unfortunately, you need to promptly open and respond to every government letter, no matter how anxious you feel. Responding to a letter after the deadline (or not responding at all) may result in extra fees and penalties. A small business bookkeeping service will help you deal with the government, and will explain what’s happening in layman’s terms.
Hiring a knowledgeable bookkeeper to manage your books will also help you avoid future issues with the government, so you can reduce unnecessary stress.
Letting Client Accounts Fall Wayside
Are you undercharging your clients without knowing it? Or maybe you’re struggling to collect client payments on time, which is hurting your bottom line. A Toronto bookkeeper will help you avoid these problems before they come back to haunt you. Working with a small business bookkeeping service will help you stay on top of your client accounts, and keep track of your invoices and payments.
Not Maintaining a Record of Cash Payments
It’s easy to accept a cash payment and forget to record it, resulting in your accounts receivable being out of date. Moreover, if you used that cash to pay for a business expense and forgot to record it, you also missed an opportunity record a business expense that could reduce your tax when you file. A Toronto bookkeeping service will ensure your books and accounts receivable are always up to date, and you never miss an opportunity to record business expenses when filing your taxes.
Throwing Away Expense Receipts
Do you throw away your cash, banking, and credit card receipts, or stash them in a folder to record in your books? If you throw away your receipts, you won’t have a legitimate record of your business transactions if the CRA calls. Not maintaining an accurate record of your business purchases and failing to keep copies of your receipts could result in a lot of problems. A small bookkeeping service will help you organize and document your receipts, so you always have an updated record of your business expenses to show the CRA.
Hiring a Toronto bookkeeping service is essential for risk management if you run a small business. A reputable bookkeeper will help you avoid problems with the CRA, and also save you time and money. If you’d like to work with an experienced bookkeeping service in the Greater Toronto Area, Bookkeeping for GTA is here to help. We’re an organization of expert bookkeepers who are dedicated to providing your business with professional bookkeeping services. At Bookkeeping for GTA, we specialize in medium and small business bookkeeping. We handle all aspects of bookkeeping, from implementing, converting, and maintaining systems, to ensuring all of your information is current and accurate. Ensure your business is never at risk and contact Bookkeeping for GTA today.